GMS Market Commentary on Ship Breaking in Week 05
Ship BreakingDaily Sabah

GMS Market Commentary on Ship Breaking in Week 05

World's leading cash buyer of ships for recycling GMS said that “Last week, the big news from the subcontinent markets concerns the announcement of the

World's leading cash buyer of ships for recycling GMS said that “Last week, the big news from the subcontinent markets concerns the announcement of the Indian budget, which proposes DOUBLING the capacity in Alang for taking in ships for recycling. In the budget, it has been expressly stated that the Indian government would make greater efforts to entice ships from Europe and Japan to Alang and that the recycling capacity of 4.5 million LDT would be doubled by 2024. How this will be achieved and what kind of stimulus packages will be put in place for the industry remains to be seen. However, this is an important first step for PM Modi’s government to finally recognize the importance of the domestic ship recycling sector for the country. We certainly hope that this will have a knock-on effect across the Indian sub-continent ship recycling markets. Currently, there are 90 HKC approved yards in India & one in Chittagong and it is hoped that if governments in Bangladesh and Pakistan take the announcement we have seen during the Indian budget this week just as seriously, then greater efforts can hopefully be anticipated to similarly upgrade facilities across the sub-continent at large.”

GMS added “In terms of pricing, the markets remain in the doldrums, although they have at least stopped tumbling. A steep decline had been witnessed from the middle of January, with almost USD 100/LDT being knocked off prices. However, there is hope that the worst of the falls are over and the only way from here is up. Wrapping up the week in the recycling industry is the Turkish market, whose unrelenting free-fall over the last several weeks have been without remorse and this week is no different, with both steel fundamentals, scrap and imports, reporting further declines last week and on to reversing a healthy majority of its recent gains.”

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